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Natural Food Colours Market Expected to Enlarge at Value CAGR of 5.4% Through 2026

07-18-2018 04:37 PM CET | Advertising, Media Consulting, Marketing Research

Press release from: Future Market Insights

Natural Food Colours Market Expected to Enlarge at Value CAGR

The global natural food colours market represented around 55% of the total food colour market in 2015 and is expected to account for over 60% of the overall market by 2026. The market growth is estimated at a healthy CAGR of 5.4% in terms of value over the forecast period of 2016 through 2026. Growth will remain robust in North America owing to increasing consumer preference for organic and clean label products. The general “health and wellness” trend will also continue to influence the demand for natural food colours in North America.

North America Key for Global Natural Food Colour Market Revenues : The global natural food colours market is expected to observe a significant growth coming from the North America market. In terms of value, the natural food colours market in North America is expected to expand at a CAGR of 5.9% over the forecast period, to reach a market value of US$ 636.5 Mn by 2026. North America accounts for almost 30% of the total share of the global natural food colours market, which is expected to increase significantly by 2026 end. Increasing government support for encouraging the adoption of natural food colours in various food and beverage applications, in turn, is expected to boost growth of the natural food colours market in North America.Demand for natural food colours in the U.S is expected to increase during the latter years of the forecast period. This is primarily attributed to launch of new products with natural ingredients. In addition, rise in development of colour options for the production of blue, green and red colour that find usage in various food and beverage products, is expected to drive global demand for pigments such as spirulina and lycopene over the next five to six years.

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North America Natural Food Colours Market– Segment-wise Overview : By the pigment type, the natural food colour market will witness a major contribution from carotenoids segment. In terms of volume, the carotenoids segment holds the largest share and accounts for over 30% of the total North America natural food colour market. The Spirulina Extract segment is anticipated to demonstrate the strongest growth in North America market over the forecast period with a healthy double digit CAGR. North America is a highly regulated market for a few natural food colours that include Lutein, Spirulina Extract, Chlorophyll, Astaxanthin Extract and Carmine/Cochineal Extract.In North America natural food colours market, beverages application segment is estimated to account for more than 25% value share by 2016 end, which is expected to increase further by 2026 end. Demand from confectionery and bakery market segment is expected to grow at the strongest CAGR over the forecast period.

There has been a rise in the number of strategic alliances among the natural food colour players across the value chain in North America. A majority of the companies are bestowing increasing focus on developing innovative and sustainable natural food colours solutions that are capable of catering to a wide range of food and beverages end user consumer base, particularly in the U.S. Retailers across the North America are removing products with synthetic ingredients. This is primarily attributed to the shift in consumer preference from synthetic to natural ingredients, which has led to the rise in demand and development of stable and clean label ingredients.Asia Pacific excluding Japan is another significant regional market which is projected to register the highest CAGR among other regions in the global natural food colours market during the forecast period. Natural food colours adoption in MEA is comparatively lower due to low availability of raw materials. However, it is expected to record significant growth during latter years of the forecast period.

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Future Market Insights (FMI) is a leading market intelligence and consulting firm. We deliver syndicated research reports, custom research reports and consulting services, which are personalized in nature. FMI delivers a complete packaged solution, which combines current market intelligence, statistical anecdotes, technology inputs, valuable growth insights, an aerial view of the competitive framework, and future market trends.

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